Buy vs Rent Calculator UK 2026
Compare the true financial cost of buying versus renting a property over 5, 10, or 20 years. Factors in stamp duty, mortgage interest, maintenance costs, and house price growth — giving you a net cost comparison that accounts for the equity you build.
Buy vs Rent Calculator
Over 10 years
Buying is £217,394 cheaper
Effective monthly cost: buying -£312 vs renting £1,500
Total cost of buying
- Stamp duty
- £5,000
- Total interest
- £123,979
- Maintenance
- £40,124
- Gross costs
- £169,102
- Less equity gain
- −£206,497
- Net cost
- -£37,394
Total cost of renting
- Total rent paid
- £180,000
- Net cost
- £180,000
Buying costs assume first-time buyer SDLT rates (England). House price growth and maintenance costs are illustrative. This is not financial advice — speak to a qualified adviser before making a property decision.
How this calculator compares buying and renting
The calculator computes the total net cost of buying over your chosen time horizon by adding up stamp duty, total mortgage interest paid, and annual maintenance costs — then subtracting the equity gain you would have accumulated (the difference between the property value at end of period and your remaining mortgage balance). This net cost is compared directly to the total rent you would have paid over the same period.
The model assumes first-time buyer stamp duty rates for England. Maintenance is calculated as a percentage of the growing property value each year. The remaining mortgage balance at the end of the period is calculated using the standard annuity amortisation formula.
What the calculator does not include
For simplicity, this calculator omits conveyancing and survey fees (typically £2,000–£5,000), buildings insurance, ground rent and service charges on leasehold properties, and the opportunity cost of capital tied up in the deposit. On the renting side, it assumes rent is constant — in practice, rents rise over time. These factors generally make buying look more attractive over long horizons than the simple model shows.
Frequently asked questions
- Is it cheaper to buy or rent in the UK?
- The answer depends on the area, time horizon, and prevailing mortgage rates. In high-price areas like London, renting can be cheaper in the short term as mortgages on expensive properties are very large. In lower-cost areas, buying often becomes cheaper than renting within three to five years. Over long horizons of 10–20 years, buying almost always wins financially because you build equity and benefit from house price growth. Our calculator lets you model your specific situation.
- What costs should I include when comparing buying versus renting?
- For buying, the key costs are stamp duty (SDLT), total mortgage interest paid over the period, annual maintenance (typically 1–2% of property value per year), and transaction costs such as solicitor and surveyor fees. Against these costs you must offset the equity you build and any house price appreciation. For renting, the primary cost is monthly rent — though renters retain capital they would otherwise use as a deposit, which could be invested elsewhere.
- How long do I need to own a property to beat renting?
- Typically three to five years is the minimum holding period for buying to beat renting, as upfront costs — particularly stamp duty and conveyancing fees — take time to recover. At low mortgage rates and with house price growth, break-even can occur sooner. In slow markets or at high rates, it may take longer. Our calculator shows the comparison over 5, 10, and 20 years so you can judge the right horizon for your circumstances.
- Does house price growth affect the buy vs rent decision?
- Yes, significantly — especially over longer time horizons. If you assume 3% annual house price growth on a £350,000 property, after 20 years the property is worth approximately £632,000. This capital gain forms a large part of the financial case for buying. Conversely, if house prices stagnate or fall, the financial case for buying weakens. Our calculator allows you to adjust the annual growth assumption to test different scenarios.
- What is the 5% rule for buy vs rent?
- The 5% rule (popularised by financial commentator Ben Felix) suggests that the annual cost of owning a property is roughly 5% of its value — made up of approximately 3% for the opportunity cost of capital tied up in the deposit (or the full purchase price if no mortgage), 1% for maintenance, and 1% for property taxes and transaction costs. Divide the property price by 20 to get the annual breakeven rent: if you can rent an equivalent property for less than this figure, renting may be the better financial choice.
Related tools
- Mortgage Affordability Calculator — Find out how much you could borrow
- Stamp Duty Calculator — Calculate SDLT, LBTT or LTT for any UK property purchase
- Remortgage Savings Calculator — See how much you could save by switching mortgage deals
- Sold house prices — Search HM Land Registry price paid data